General insurance

In Switzerland, you have various types of general insurance, some of which are mandatory and some voluntary.

Auto insurance All vehicles licensed in Switzerland must be covered by third-party liability insurance. There are four different levels of auto insurance coverage in Switzerland:

third-party liability

third-party fire and theft

collision or comprehensive

passenger accident coverage

All levels of coverage other than third-party liability are voluntary. Furthermore, third-party liability and collision insurance cover only the vehicle and not its owner. This means that damages are covered regardless of who is driving the car at the time of the accident.

Third-party liability insurance is obligatory and governed by law. It covers personal injury and property damage caused to third parties by the vehicle. While almost all insurance companies offer the same types of third-party liability coverage, premiums can still vary. It is therefore worthwhile to compare the premiums offered.

Household-contents insurance does not cover damage to the building; instead, it is covered by city building insurance, which is the responsibility of the building owner.

Personal liability insurance Personal liability insurance is not mandatory but is highly recommended for all. Imagine what would happen if you, your child, or your pet were to cause a serious accident. Without liability insurance, you are liable for the damages caused, possibly for an unlimited amount that could include your personal assets as well as current and future income.

Third-party liability insurance protects against financial catastrophe in the event of an accident. This insurance covers all damages: for example, damage to property, medical expenses, compensation for pain and suffering, compensation for loss of earnings or even disability or survivor‘s pension.

More frequently, however, third-party liability insurance is used to claim minor damage caused by tenants to rental properties, such as soiled carpets or other property damage. Additional third-party liability insurance is necessary if you pursue certain activities: for example, hunting, extreme sports, riding a borrowed horse, or keeping wild animals.

You also require additional liability coverage for damages caused by a vehicle that may occasionally be borrowed, and for secondary paid employment or even as a self-employed person.

As in all matters relating to insurance, advice on the subjects of insurance, financial provision and wealth formation can be readily obtained from independent insurance brokers with no obligation.